An announcement from our new spin-off company, PacketHop

PacketHop Ushers in Mobile Mesh Networking Solution Poised to Deliver Instant Broadband Connectivity -- Anytime, Anywhere, and to Any Device

Innovator in Wireless Networking Leverages SRI International's 30-Year Technology Legacy; Awarded Exclusive Technology License

BELMONT, California - November 10, 2003 – PacketHop, Inc., today unveiled plans to deliver the first commercial application of mobile mesh networking technology for instant connectivity – anytime, anywhere and to any device. Funded by U.S. Venture Partners and Mayfield, PacketHop has been awarded the exclusive technology license and patents from SRI International, building on 30 years of innovation and $50 million in related R&D trials.

“PacketHop is seizing the opportunity to transform mobile communications,” said Michael Howse, CEO and co-founder of PacketHop. “Whether sharing mission-critical data between emergency relief workers, controlling traffic patterns among diverse car makes and models, or exchanging media-rich voice and video files for enterprise and consumer markets – PacketHop's technology is enabling the future of ubiquitous wireless networking.”

PacketHop delivers scalable networking to mobile devices and computers – providing high-end broadband capabilities and instant connectivity – while reducing or eliminating dependence on fixed infrastructure. The company's mobile mesh networking technology – the first commercially viable, cost-effective software solution – uses standard Internet protocols (IP), commercially available radios and existing operating systems.

The genesis of PacketHop can be traced from the early days of the ARPANET (the precursor to the Internet) in the late 1960s, through the first mobile wireless Internet transmission in the 1970s, to one of the largest integrated multimedia communications deployments in the 1990s.

“SRI is excited to contribute to the commercialization of this technology,” said Dr. Norman Winarsky, vice president of ventures and strategic programs at SRI International. “As the technology moved from a laboratory concept to field tests, it became clear that mobile mesh networking technology will be a key driver in the evolution of wireless communications.”

Transforming Mobile Communications

PacketHop's board of directors and executives are recognized globally for their technological innovations and business successes. Prominent networking expert, Dr. Ambatipudi R. Sastry, serves as CTO and co-founder, and joins Silicon Valley-veteran and PacketHop CEO, Michael Howse, on the executive team. In addition to Dr. Winarsky, premier venture investors David Liddle, general partner of USVP and pioneer of Ethernet, and Yogen Dalal, managing partner for Mayfield and co-developer of the TCP/IP protocol, serve on the board of directors.

Together, this accomplished team founded PacketHop in January 2003, after securing the exclusive technology license from SRI International. “PacketHop is a brilliant technology that is perfectly timed to leverage the proliferation of inexpensive wireless devices and exploit existing global markets,” commented Liddle.

Dalal added, “PacketHop's innovative routing protocols remind me of the early days of TCP/IP development, and I fully expect the company to be at the forefront of wireless networking, yielding exponential value and new revenue opportunities for device makers, equipment manufacturers and mainstream mobile service providers.”

Broadband Connectivity – Anytime, Anywhere, Any Device

Drawing on the phenomenal market growth of mobile devices and broadband technologies, PacketHop's mobile mesh technology makes wireless communication and media-rich data exchange instant, persistent, scalable, secure, and cost effective.

Instant – PacketHop's technology instantly adapts network topology to match the rapid movements and changing conditions of users, while offering seamless, on-the-fly access from any device across existing networks.

Persistent – PacketHop technology is a self-forming, self-healing mobile mesh networking software solution that ensures quality of service (QoS) functions such as session persistence and reliable data distribution for applications – even when sending complex multimedia packets in dynamic environments.

Scalable – PacketHop's network management products enable mobile mesh networks to scale to thousands of users by providing control and hierarchical connectivity between multiple mobile mesh networks.

Secure – PacketHop's security technology delivers an innovative solution designed for wireless mesh networks, including distributed authentication, data confidentiality, interference mitigation, and integration with existing security systems to ensure the availability of the network and integrity of data.

Cost Effective – PacketHop leverages the Wi-Fi/802.11 revolution and multi-mode radio adoption, implementing a device-agnostic and application-adaptive approach, to deliver the first commercially viable and cost-effective mobile mesh networking solution.

PacketHop's solution is comprised of client-side software that installs easily on mobile devices and computers, as well as network management tools that interface seamlessly to distributed and centralized control systems (access points, base stations, etc.). This first-of-its-kind software solution forms a horizontal technology foundation and works with off-the-shelf hardware. Software-based networking is by nature more affordable and infinitely more adaptable, making it an ideal and cost-effective solution for a variety of target markets, including automotive, consumer, enterprise, home networking, homeland security and more.

Specifics related to customer trials of commercial significance, as well as additional details on PacketHop's client software and network management products are expected to be unveiled in Q1 2004.

About Mayfield
Mayfield has provided Venture Capital with Impact and shown leadership in early-stage venture investing time and again by teaming up with exceptional individuals to create industry-leading companies. Founded in 1969, Mayfield has deep domain expertise in applications and infrastructure software, networking, semiconductor communications and consumer technology. In the last 34 years, Mayfield has invested in nearly 400 companies and has taken more than 100 of them public. For more information, please visit www.mayfield.com.

About U.S. Venture Partners
U.S. Venture Partners (USVP) is a venture capital firm dedicated to helping entrepreneurs build world-class companies that are leaders in their industries. Since its inception in 1981, USVP has raised more than $2.5 billion in eight funds, and has invested over $1.5 billion in more than 300 companies. USVP companies include such notable industry leaders as Sun Microsystems, AMCC, Check Point Software Technologies, Nuance Communications, MMC Networks, Centillium Communications, New Focus, Stratacom/Cisco, Xylan and CacheFlow in the information technology sectors, and Advanced Cardiovascular Systems, Applied Biosystems, CardioThoracic Systems, Cell Genesys, and Vical in the medical technology sectors. www.usvp.com

About SRI International
Silicon Valley-based SRI International (www.sri.com) is one of the world's leading independent research and technology development organizations. Founded as Stanford Research Institute in 1946, SRI has been meeting the strategic needs of clients for more than 55 years. The nonprofit research institute performs contract research and development for government agencies, commercial businesses and private foundations. In addition to conducting contract R&D, SRI licenses its technologies, forms strategic partnerships and creates spin-off companies.

About PacketHop
PacketHop is poised to transform mobile communications, introducing the first-of-its kind mobile mesh networking solution that enables instant broadband connectivity – anytime, anywhere, and to any device. PacketHop delivers secure, scalable wireless access and high-end broadband capabilities to broad markets, including enterprise, homeland security, automotive, and consumer electronics, among others. Founded in January 2003 and based in Silicon Valley, PacketHop is funded by premier venture firms U.S. Venture Partners and Mayfield, as well as SRI International. More information on PacketHop can be found at www.packethop.com.

For more information, please contact: